Can I apply for 2 loans?

Saver1011

Hi all, I'm hoping to get a loan to pay off credit cards and close them down - I want to borrow £30k over 4 years but a friend advised the best thing to do is to apply for 2 loans of £15k each. Is that likely to be an issue? My plan was to go to my bank and apply for one £15k loan to pay off 2 of my cards, then go to my other bank which has my other credit card to see if I can get a loan with them to pay off the card. I can afford repayments of £750 a month, am a homeowner and earn c.£50k a yr.

Many thanks for any advice on the best way to proceed.

matttye

How much debt do you have already? If the entire loan is going to be used to pay off credit card debts, then you'd have £60k total debt which is more than your annual salary and I think you're unlikely to get it no matter how you apply for it.

Could you not apply for some 0% credit cards and shift balances onto them so you're not paying interest?

Saver1011

Hi, about £29k of debt on cards - I meant to apply for 2x loans of £15k each, not two lots of £30k. Hadn't thought of 0% cards as I'd really rather get rid of all my cards entirely

dealer_wins

LOL, you'll be lucky to be accepted for a payday loan!!

CKhalvashi

Saver1011 wrote: »

Hi, about £29k of debt on cards - I meant to apply for 2x loans of £15k each, not two lots of £30k. Hadn't thought of 0% cards as I'd really rather get rid of all my cards entirely

You need to do this by using what credit you already have.

Make minimum payment plus £1 on all the cards already, then throw anything left at the one with highest interest.

Think about getting over to the Debt Free Wannabee forum, to get a diary started, thus motivating yourself with people in the same situation.

You're already stretched to 60%ish of salary, so the lenders won't let you go further, but you are taking home £3kish a month, which should help you get it shifted.

CK

CLAPTON

worth trying for 15k

pay off half the CC debt (highest APR) with the money

wait until your credit files show that the CCs are paid off

and then try for the other 15k

boo_star

Saver1011 wrote: »

Hi all, I'm hoping to get a loan to pay off credit cards and close them down - I want to borrow £30k over 4 years but a friend advised the best thing to do is to apply for 2 loans of £15k each. Is that likely to be an issue? My plan was to go to my bank and apply for one £15k loan to pay off 2 of my cards, then go to my other bank which has my other credit card to see if I can get a loan with them to pay off the card. I can afford repayments of £750 a month, am a homeowner and earn c.£50k a yr.

Many thanks for any advice on the best way to proceed.

The banks may or may not agree to a consolidation loan to pay off the balance, it's a fine balance between revolving credit and "guaranteed" payments.

You can certainly ask but I suspect both applications will be declined (after all it's less money for them in the long run.)

You're essentially asking for a lower interest rate over a shorter term. If they want shut of you, fine. If they're ok with it, not so much.

Apples2

Have you addressed why go have managed to spend £30,000 more than you earn?

If those credit card balances are reduced, what will stop you running up another £30k?
It's easy to say the cards will go but that is a fair change of lifestyle to take a 30k pay cut.

What are the card limits (not the balance)?

matttye

Saver1011 wrote: »

Hi, about £29k of debt on cards - I meant to apply for 2x loans of £15k each, not two lots of £30k. Hadn't thought of 0% cards as I'd really rather get rid of all my cards entirely

What I mean is, there's no guarantee to the lender that you'll pay off those cards with the loans, or that you won't run them back up again, so your existing £29k plus a loan of £30k (or 2x £15k) = £59k total.

It's not likely you'll get such a loan due to the amount of credit you have already.

Fishingtime

You owe about 29k but you want to borrow 30k
Just getting yourself deeper into debt

HappyMJ

Saver1011 wrote: »

Hi all, I'm hoping to get a loan to pay off credit cards and close them down - I want to borrow £30k over 4 years but a friend advised the best thing to do is to apply for 2 loans of £15k each. Is that likely to be an issue? My plan was to go to my bank and apply for one £15k loan to pay off 2 of my cards, then go to my other bank which has my other credit card to see if I can get a loan with them to pay off the card. I can afford repayments of £750 a month, am a homeowner and earn c.£50k a yr.

Many thanks for any advice on the best way to proceed.

I would apply for £15k...I think that should be approved as you do earn enough for that...then pay off some cards (the ones charging the highest interest) and close them down...then wait a few months for them to drop off your credit report and apply for the other £15k and close the remaining cards down. I'm not sure if the second £15k loan will be approved but at least half your debt will be transferred to lower interest rates.